NEW AGRICULTURE POLICY
Agriculture is a way of life, a tradition, which, for
centuries, has shaped the thought, the outlook, the culture and the economic
life of the people of India. Agriculture, therefore, is and will continue to be
central to all strategies for planned socio-economic development of the
country. Rapid growth of agriculture is essential not only to achieve
self-reliance at national level but also for household food security and to
bring about equity in distribution of income and wealth resulting in rapid
reduction in poverty levels.
Indian agriculture has, since Independence, made rapid
strides. In taking the annual foodgrains production from 51 million tonnes in
early fifties to 206 million tonnes at the turn of the century, it has contributed
significantly in achieving self-sufficiency in food and in avoiding food
shortages.
Over 200 million Indian farmers and farm workers have been
the backbone of India’s agriculture. Despite having achieved national food
security the well being of the farming community continues to be a matter of
grave concern for planners and policy makers. The establishment of an agrarian
economy which ensures food and nutrition to India’s billion people, raw
materials for its expanding industrial base and surpluses for exports, and a
fair and equitable reward system for the farming community for the services
they provide to the society, will be the mainstay of reforms in the agriculture
sector.
The National Policy on Agriculture seeks to actualise the
vast untapped growth potential of Indian agriculture, strengthen rural
infrastructure to support faster agricultural development, promote value
addition, accelerate the growth of agro business, create employment in rural
areas, secure a fair standard of living for the farmers and agricultural
workers and their families, discourage migration to urban areas and face the
challenges arising out of economic liberalization and globalisation. Over the
next two decades, it aims to attain:
The salient features of the new agricultural policy are:
1. Over 4 per cent annual growth rate
aimed over next two decades..
2. Greater private sector participation
through contract farming.
3. Price protection for farmers.
4. National agricultural insurance
scheme to be launched.
5. Dismantling of restrictions on
movement of agricultural commodities throughout the country.
6. Rational utilisation of country's
water resources for optimum use of irrigation potential.
7. High priority to development of
animal husbandry, poultry, dairy and aquaculture.
8. Capital inflow and assured markets
for crop production.
9. Exemption from payment of capital
gains tax on compulsory acquisition of agricultural land.
10.
Minimise
fluctuations in commodity prices.
11.
Continuous
monitoring of international prices.
12.
Plant
varieties to be protected through a legislation.
13.
Adequate
and timely supply of quality inputs to farmers.
14.
High
priority to rural electrification.
15.
Setting
up of agro-processing units and creation of off-farm employment in rural areas.
Sustainable Agriculture
The policy will seek to promote technically sound,
economically viable, environmentally non-degrading, and socially acceptable use
of country’s natural resources – land, water and genetic endowment to promote
sustainable development of agriculture. Measures will be taken to contain
biotic pressures on land and to control indiscriminate diversion of
agricultural lands for non-agricultural purposes. The unutilized wastelands
will be put to use for agriculture and afforestation. Particular attention will
be given for increasing cropping intensity through multiple-cropping and
inter-cropping.
Rational utilization and conservation of the country’s
abundant water resources will be promoted. Conjunctive use of surface and
ground water will receive highest priority. Special attention will be focused
on water quality and the problem of receding ground-water levels in certain
areas as a result of over-exploitation of underground aquifers. Proper on-farm
management of water resources for the optimum use of irrigation potential will
be promoted.
Erosion and narrowing of the base of India’s plant and
animal genetic resources in the last few decades has been affecting the food
security of the country. Survey and evaluation of genetic resources and safe
conservation of both indigenous and exogenously introduced genetic variability
in crop plants, animals and their wild relatives will receive particular
attention. The use of bio-technologies will be promoted for evolving plants
which consume less water, are drought resistant, pest resistant, contain more
nutrition, give higher yields and are environmentally safe. Conservation of
bio-resources through their ex situ preservation in Gene Banks, as also in
situ conservation in their natural habitats through bio-diversity parks,
etc., will receive a high priority to prevent their extinction. Specific
measures will also be taken to conserve indigenous breeds facing extinction.
There will be a time bound programme to list, catalogue and classify country’s
vast agro bio-diversity.
Sensitization of the farming community with the
environmental concerns will receive high priority. Balanced and conjunctive use
of bio-mass, organic and inorganic fertilizers and controlled use of agro
chemicals through integrated nutrients and pest management (INM & IPM) will
be promoted to achieve the sustainable increases in agricultural production. A
nation-wide programme for utilization of rural and urban garbage, farm residues
and organic waste for organic matter repletion and pollution control will be
worked out.
Agro-forestry and social forestry are prime requisites for
maintenance of ecological balance and augmentation of bio-mass production in
agricultural systems. Agro-forestry will receive a major thrust for efficient
nutrient cycling, nitrogen fixation, organic matter addition and for improving
drainage. Farmers will be encouraged to take up farm/agro-forestry for higher
income generation by evolving technology, extension and credit support packages
and removing constraints to development of agro and farm forestry. Involvement
of farmers and landless labourers will be sought in the development of
pastures/forestry programmes on public wastelands by giving financial
incentives and entitlements to the usufructs of trees and pastures.
The history and traditional knowledge of agriculture,
particularly of tribal communities, relating to organic farming and
preservation and processing of food for nutritional and medicinal purposes is
one of the oldest in the world. Concerted efforts will be made to pool, distil
and evaluate traditional practices, knowledge and wisdom and to harness them
for sustainable agricultural growth.
Food and Nutritional Security
Special efforts will be made to raise the productivity and
production of crops to meet the increasing demand for food generated by
unabated demographic pressures and raw materials for expanding agro-based
industries. A regionally differentiated strategy will be pursued, taking into
account the agronomic, climatic and environmental conditions to realize the
full growth potential of every region. Special attention will be given to
development of new crop varieties, particularly of food crops, with higher
nutritional value through adoption of bio-technology particularly genetic
modification, while addressing bio-safety concerns.
A major thrust will be given to development of rainfed and
irrigated horticulture, floriculture, roots and tubers, plantation crops,
aromatic and medicinal plants, bee-keeping and sericulture, for augmenting food
supply, exports and generating employment in rural areas. Availability of
hybrid seeds and disease-free planting materials of improved varieties,
supported by a network of regional nurseries, tissue culture laboratories, seed
farms will be promoted to support systematic development of horticulture having
emphasis on increased production, post-harvest management, precision farming,
bio-control of pests and quality regulation mechanism and exports.
Animal husbandry and fisheries also generate wealth and
employment in agriculture sector. Development of animal husbandry, poultry,
dairying and aqua-culture will receive a high priority in the efforts for
diversifying agriculture, increasing animal protein availability in the food
basket and for generating exportable surpluses. A national livestock breeding
strategy will be evolved to meet the requirements of milk, meat, egg and
livestock products and to enhance the role of draught animals as a source of
energy for farming operations and transport. Major thrust will be on genetic
upgradation of indigenous/native cattle and buffaloes using proven semen and
high quality pedigreed bulls and by expanding artificial insemination network
to provide services at the farmer’s doorstep.
Generation and dissemination of appropriate technologies in
the field of animal production as also health care to enhance production and
productivity levels will be given greater attention. Cultivation of fodder
crops and fodder trees will be encouraged to meet the feed and fodder
requirements and to improve animal nutrition and welfare. Priority will also be
given to improve the processing, marketing and transport facilities, with
emphasis on modernization of abattoirs, carcass utilization and value addition
thereon. Since animal disease eradication and quarantine is critical to
exports, animal health system will be strengthened and disease-free zones
created. The involvement of cooperatives and private sector will be encouraged
for development of animal husbandry, poultry and dairy. Incentives for
livestock and fisheries production activities will be brought at par with
incentives for crop production.
An integrated approach to marine and inland fisheries,
designed to promote sustainable aquaculture practices, will be adopted.
Biotechnological application in the field of genetics and breeding, harmonal
applications, immunology and disease control will receive particular attention
for increased aquaculture production. Development of sustainable technologies
for fin and shell fish culture as also pearl-culture, their yield optimization,
harvest and post-harvest operations, mechanization of fishing boats,
strengthening of infrastructure for production of fish seed, berthing and
landing facilities for fishing vessels and development of marketing
infrastructure will be accorded high priority. Deep sea fishing industry will
be developed to take advantage of the vast potential of country’s exclusive
economic zone.
Generation and Transfer of Technology
A very high priority will be accorded to evolving new
location-specific and economically viable improved varieties of agricultural
and horticultural crops, livestock species and aquaculture as also conservation
and judicious use of germplasm and other bio-diversity resources. The
regionalization of agricultural research, based on identified agro-climatic
zones, will be accorded high priority. Application of frontier sciences like
bio-technology, remote sensing technologies, pre and post-harvest technologies,
energy saving technologies, technology for environmental protection through
national research system as well as proprietary research will be encouraged.
The endeavour will be to build a well organized, efficient and result-oriented
agriculture research and education system to introduce technological change in
Indian agriculture. Upgradation of agricultural education and its orientation
towards uniformity in education standards, women empowerment, user-orientation,
vocationalization and promotion of excellence will be the hallmark of the new
policy..
The research and extension linkages will be strengthened to
improve quality and effectiveness of research and extension system. The
extension system will be broad-based and revitalized. Innovative and
decentralized institutional changes will be introduced to make the extension
system farmer-responsible and farmer-accountable. Role of Krishi Vigyan Kendras
(KVKs), Non-Governmental Organizations (NGOs), Farmers Organizations,
Cooperatives, corporate sector and para-technicians in agricultural extension
will be encouraged for organizing demand-driven production systems. Development
of human resources through capacity building and skill upgradation of public
extension functionaries and other extension functionaries will be accorded a high
priority. The Government will endeavour to move towards a regime of financial
sustainability of extension services through effecting in a phased manner, a
more realistic cost recovery of extension services and inputs, while
simultaneously safeguarding the interests of the poor and the vulnerable
groups.
Mainstreaming gender concerns in agriculture will receive
particular attention. Appropriate structural, functional and institutional
measures will be initiated to empower women and build their capabilities and
improve their access to inputs, technology and other farming resources.
Inputs Management
Adequate and timely supply of quality inputs such as seeds,
fertilizers, plant protection chemicals, bio-pesticides, agricultural machinery
and credit at reasonable rates to farmers will be the endeavour of the
Government. Soil testing and quality testing of fertilisers and seeds will be
ensured and supply of spurious inputs will be checked. Balanced and optimum use
of fertilizers will be promoted together with use of organic manures and
bio-fertilizers to optimize the efficiency of nutrient use.
Development, production and distribution of improved
varieties of seeds and planting materials and strengthening and expansion of
seed and plant certification system with private sector participation will
receive a high priority. A National Seed Grid will be established to ensure
supply of seeds especially to areas affected by natural calamities. The
National Seeds Corporation (NSC) and State Farms Corporation of India (SFCI)
will be restructured for efficient utilization of investment and manpower.
Protection to plant varieties through a sui generis
legislation, will be granted to encourage research and breeding of new
varieties particularly in the private sector in line with India’s obligations
under TRIPS Agreement. The farmers will, however, be allowed their traditional
rights to save, use, exchange, share and sell their farm saved seeds except as
branded seeds of protected varieties for commercial purpose. The interests of
the researchers will also be safeguarded in carrying out research on
proprietary varieties to develop new varieties.
Integrated pest management and use of biotic agents in order
to minimize the indiscriminate and injudicious use of chemical pesticides will
be the cardinal principle covering plant protection. Selective and eco-friendly
farm mechanization through appropriate technology will be promoted, with
special reference to rainfed farming to reduce arduous work and to make
agriculture efficient and competitive as also to increase crop productivity.
Incentives for Agriculture
The Government will endeavour to create a favourable
economic environment for increasing capital formation and farmer’s own
investments by removal of distortions in the incentive regime for agriculture,
improving the terms of trade with manufacturing sectors and bringing about
external and domestic market reforms backed by rationalization of domestic tax
structure. It will seek to bestow on the agriculture sector in as many respects
as possible benefits similar to those obtaining in the manufacturing sector,
such as easy availability of credit and other inputs, and infrastructure
facilities for development of agri-business industries and development of
effective delivery systems and freed movement of agro produce.
Consequent upon dismantling of Quantitative Restrictions on imports
as per WTO Agreement on Agriculture, commodity-wise strategies and arrangements
for protecting the grower from adverse impact of undue price fluctuations in
world markets and for promoting exports will be formulated. Apart from price
competition, other aspects of marketing such as quality, choice, health and
bio-safety will be promoted. Exports of horticultural produce and marine
products will receive particular emphasis. A two-fold long term strategy of
diversification of agricultural produce and value addition enabling the
production system to respond to external environment and creating export demand
for the commodities produced in the country will be evolved with a view to
providing the farmers incremental income from export earnings. A favourable
economic environment and supportive public management system will be created
for promotion of agricultural exports. Quarantine, both of exports and imports,
will be given particular attention so that Indian agriculture is protected from
the ingress of exotic pests and diseases.
In order to protect the interest of farmers in context of
removal of Quantitative Restrictions, continuous monitoring of international
prices will be undertaken and appropriate tariffs protection will be provided.
Import duties on manufactured commodities used in agriculture will be
rationalized. The domestic agricultural market will be liberalized and all
controls and regulations hindering increase in farmers’ income will be reviewed
and abolished to ensure that agriculturists receive prices commensurate with
their efforts, investment. Restrictions on the movement of agricultural
commodities throughout the country will be progressively dismantled.
The structure of taxes on foodgrains and other commercial
crops will be reviewed and rationalized. Similarly, the excise duty on
materials such as farm machinery and implements, fertilizers, etc., used as
inputs in agricultural production, post harvest storage and processing will be
reviewed. Appropriate measures will be adopted to ensure that agriculturists by
and large remain outside the regulatory and tax collection systems. Farmers
will be exempted from payment of capital gains tax on compulsory acquisition of
agricultural land.
Investments in Agriculture
The agriculture sector has been starved of capital. There
has been a decline in the public sector investment in the agriculture sector.
Public investment for narrowing regional imbalances, accelerating development
of supportive infrastructure for agriculture and rural development particularly
rural connectivity will be stepped up. A time-bound strategy for
rationalisation and transparent pricing of inputs will be formulated to
encourage judicious input use and to generate resources for agriculture. Input
subsidy reforms will be pursued as a combination of price and institutional
reforms to cut down costs of these inputs for agriculture. Resource allocation
regime will be reviewed with a view to rechannelizing the available resources
from support measures towards assets formation in rural sector.
A conducive climate will be created through a favourable
price and trade regime to promote farmers’ own investments as also investments
by industries producing inputs for agriculture and agro-based industries.
Private sector investments in agriculture will also be encouraged more
particularly in areas like agricultural research, human resource development,
post-harvest management and marketing.
Rural electrification will be given a high priority as the
prime mover for agricultural development. The quality and availability of
electricity supply will be improved and the demand of the agriculture sector
will be met adequately in a reliable and cost effective manner. The use of new
and renewable sources of energy for irrigation and other agricultural purposes
will also be encouraged.
Bridging the gap between irrigation potential created and
utilized, completion of all on-going projects, restoration and modernization of
irrigation infrastructure including drainage, evolving and implementing an
integrated plan of augmentation and management of national water resources will
receive special attention for augmenting the availability and use of irrigation
water.
Emphasis will be laid on development of marketing
infrastructure and techniques of preservation, storage and transportation with
a view to reducing post-harvest losses and ensuring a better return to the
grower. The weekly periodic markets under the direct control of Panchayat
Raj institutions will be upgraded and strengthened. Direct marketing and
pledge financing will be promoted. Producers markets on the lines of Ryatu
Bazars will be encouraged throughout the width and breadth of the country.
Storage facilities for different kinds of agricultural products will be created
in the production areas or nearby places particularly in the rural areas so
that the farmers can transport their produce to these places immediately after
harvest in shortest possible time. The establishment of cold chains, provision
of pre-cooling facilities to farmers as a service and cold storage in the
terminal markets and improving the retail marketing arrangements in urban
areas, will be given priority. Upgradation and dissemination of market
intelligence will receive particular attention.
Setting up of agro-processing units in the producing areas
to reduce wastage, especially of horticultural produce, increased value
addition and creation of off-farm employment in rural areas will be encouraged.
Collaboration between the producer cooperatives and the corporate sector will
be encouraged to promote agro-processing industry. An interactive coupling
between technology, economy, environment and society will be promoted for
speedy development of food and agro-processing industries and building up a
substantial base for production of value added agro-products for domestic and
export markets with a strong emphasis on food safety and quality. The Small
Farmers Agro Business Consortium (SFAC) will be energized to cater to the needs
of farmer entrepreneurs and promote public and private investments in
agri-business.
Institutional Structure
Indian agriculture is characterized by pre-dominance of
small and marginal farmers. Institutional reforms will be so pursued as to
channelize their energies for achieving greater productivity and production.
The approach to rural development and land reforms will focus on the following
areas:
- Consolidation
of holdings all over the country on the pattern of north-western States;
- Redistribution
of ceiling surplus lands and waste lands among the landless farmers,
unemployed youth with initial start-up capital;
- Tenancy
reforms to recognize the rights of the tenants and share croppers;
- Development
of lease markets for increasing the size of holdings by making legal
provisions for giving private lands on lease for cultivation and
agri-business;
- Updating
and improvement of land records, computerization and issue of land
pass-books to the farmers, and
- Recognition
of women’s rights in land.
The rural poor will be increasingly involved in the
implementation of land reforms with the help of Panchayati Raj Institutions,
Voluntary Groups, Social Activists and Community Leaders.
Private sector participation will be promoted through
contract farming and land leasing arrangements to allow accelerated technology
transfer, capital inflow and assured markets for crop production, especially of
oilseeds, cotton and horticultural crops.
Progressive institutionalization of rural and farm credit
will be continued for providing timely and adequate credit to farmers. The
rural credit institutions will be geared to promote savings, investments and
risk management. Particular attention will be paid to removal of distortions in
the priority sector lending by commercial banks for agriculture and rural
sectors. Special measures will be taken for revamping of cooperatives to remove
institutional and financial weaknesses and evolving simplified procedure for
sanction and disbursement of agriculture credit. The endeavour will be to
ensure distribution equity in the disbursement of credit. Micro-credit will be
promoted as an effective tool for alleviating poverty. Self Help Group – Bank
linkage system, suited to Indian rural sector, will be developed as a
supplementary mechanism for bringing the rural poor into the formal banking
system, thereby improving banks outreach and the credit flows to the poor in an
effective and sustainable manner.
The basic support to agriculture has been provided by
cooperative sector assiduously built over the years. The Government will
provide active support for promotion of cooperative-form of enterprise and
ensure greater autonomy and operational freedom to them to improve their
functioning. The thrust will be on:
- Structural
reforms for promoting greater efficiency and viability by freeing them
from excessive bureaucratic control and political interference;
- Creation
of infrastructure and human resource development;
- Improvement
in financial viability and organizational sustainability of cooperatives;
- Democratisation
of management and increased professionalism in their operations, and
- Creating
a viable inter-face with other grass-root Organizations.
The Legislative and regulatory framework will be
appropriately amended and strengthened to achieve these objectives.
Risk Management
Despite technological and economic advancements, the
condition of farmers continues to be unstable due to natural calamities and
price fluctuations. National Agriculture Insurance Scheme covering all farmers
and all crops throughout the country with built-in provisions for insulating
farmers from financial distress caused by natural disasters and making
agriculture financially viable will be made more farmer-specific and effective.
Endeavour will be made to provide a package insurance policy for farmers, right
from sowing of crops to post-harvest operations, including market fluctuations
in the prices of agricultural produce.
In order to reduce risk in and impart greater resilience to
Indian agriculture against droughts and floods, efforts will be made for
achieving greater flood-proofing of flood prone agriculture and
drought-proofing of rainfed agriculture for protecting farmers from vagaries of
nature. For this purpose, contingency agriculture planning, development of
drought and flood resistant crop varieties, watershed development programmes,
drought prone areas and desert development programmes and rural infrastructure
development programmes, will receive particular attention.
The Central Government will continue to discharge its
responsibility to ensure remunerative prices for agricultural produce through
announcement of Minimum Support Prices policy for major agricultural
commodities. The food, nutrition and other domestic and exports requirements of
the country will be kept in view while determining the support prices of
different commodities. The price structure and trade mechanism will be
continuously reviewed to ensure a favourable economic environment for the
agriculture sector and to bring about an equitable balance between rural and
urban incomes. The methodology used by the Commission on Agricultural Costs and
Prices (CACP) in arriving at estimates of cost of production will be
periodically reviewed. The price structure of both inputs and outputs will be
monitored to ensure higher returns to the farmers and bring about cost
effectiveness throughout the economy. Domestic market prices will be closely
monitored to prevent distress sales by farmers. Public and cooperative agencies
undertaking marketing operations, will be strengthened.
The Government will enlarge the coverage of futures markets
to minimize the wide fluctuations in commodity prices as also for hedging their
risks. The endeavour will be to cover all important agricultural products under
futures trading in course of time.
Management Reforms
Effective implementation of policy initiatives will call for
comprehensive reforms in the management of agriculture by Central and State
Governments. Central Government will supplement/complement the State
Governments’ through regionally differentiated Work Plans, comprising
crop/area/target group efforts specific interventions, formulated in an
inter-active mode and implemented in a spirit of partnership with States.
Central Government will move away from schematic approach to Macro-Management
mode and assume a role of advocacy, articulation and facilitation to help
States in their efforts towards achieving accelerated agricultural development.
The Government will focus on quality aspects at all stages
of farm operations from sowing to primary processing. The quality of inputs and
other support services to farmers will be improved. Quality consciousness
amongst farmers and agro-processors will be created. Grading and standardization
of agricultural products will be promoted for export enhancement. Application
of science and technology in agriculture will be promoted through a regular
system of interface between S&T institutions and users/potential users, to
make the sector globally competitive.
The database for agriculture sector will be strengthened to
ensure greater reliability of estimates and forecasting which will help in the
process of planning and policy making. Efforts will be made to significantly
improve and harness latest remote sensing and information technology to capture
data, collate it, add value and disseminate it to appropriate destinations for
managing the risk and in accelerating the growth process. The objective will be
to engage in a meaningful continuous dialogue with the external environment in
the changing scenario and to have on-line and real time system of ‘Agriculture
on-line’ capacity to analyze signals emanating from the farms and markets for
the benefit of farmers.
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